Who Finances Whom?

In contrast to the highly developed countries and some developing regions, Africa depends on external resources of financing development. According saving-investment gap concept, there is a significant between savings investment rates. As domestic are limited their mobilization slow, region should rely sources finance (i.e., aid, export revenues, FDI, loans, remittances) in order close gap. Despite massive inflow resources, 200 billion USD yearly still prevails. The outflow financial from form profit repatriations, debt service, tax dodging, capital flight illicit flow exceeds inflow, suggesting that bottomless barrel. long-standing concept about does not provide full explanation for prevailing main research questions as follows: (a) Why permanent Africa? b) exceed inflow? c) What be done solve problem development?
 paper structured Section 1 based saving-investmentgap explores validity this theory Sub-Saharan Africa. conclusion SSA, consequently, finance. 2 introduces (aid, FDI reveals major trends characteristics these flows. smaller than amount two arise: Where money go? Is suffering haemorrhage? 3 tries identify those “leaks” which drain Africa’s accumulated by analysing channels outflows such we present situation answer question “Who finances whom?” make recommendations enhancing development final world Africa, but world. issue cannot solved without mobilizing (including savings), (b) attracting well improving use avoiding misuse inflowing (c) curbing tackling outflow.